The private limited company (bv) is rapidly gaining popularity among new entrepreneurs in the Netherlands. Where many previously began as sole traders, more now choose a bv immediately, according to recent figures published by the Financieel Dagblad.
Benefits of a bv
One important reason is limited liability. Sole traders are personally liable for debts, whereas a bv limits the risk to the capital invested. This makes it attractive to entrepreneurs wishing to protect their personal assets.
A bv also offers tax benefits, particularly at higher profit levels. Careful use of salary and dividend payments can reduce the tax burden. It also projects a professional image, potentially improving reputation and business opportunities.
Lower incorporation costs
Lower incorporation costs also help explain the bv's popularity. Establishing a company once cost thousands of euros in incorporation and notarial fees, but has become much more accessible. This has considerably lowered the barrier for new entrepreneurs.
A virtual office for flexible entrepreneurs
Many BVs also choose to use a virtual officerather than rent permanent office premises. This provides a business address without the cost of a physical office.
Yet 'virtual' is not entirely virtual. At Zakelijkhuren24, we offer not only a business address, but also flexible workspaces and meeting rooms. Entrepreneurs can meet customers and business contacts in person and use professional facilities without being tied to a fixed lease.
An enduring trend
Experts expect the growth of BVs among new founders to continue. Flexibility, tax benefits and a professional image make them a logical choice for many new entrepreneurs. Combined with the savings available through a virtual office, the bv appears to be becoming the business structure of the future.
Looking for a business location in the capital for your bv? Read about a virtual office in Amsterdam.